New fund cuts out advisers
HBOS Australia has pitched into the low cost direct financial services market with the launch of an Australian equities fund.
The fund, called the Top 200 which reflects its investment strategy, will be available over the internet, telephone, through the branches of HBOS-owned BankWest, and its financial planning arm, St Andrew’s Financial Services.
HBOS Australia insurance and investment chief executive John Van Der Wielen said the direct investment product creates an opportunity for customers to invest in the Australian stock market without the use of a broker or financial adviser.
“Top 200 opens the door for more Australians to diversify their wealth management investments through the share market without extensive time-consuming research and without the need for a broker or financial planner,” he said.
“The product is especially suited to customers who have funds to invest but are time-poor.”
The minimum investment into the fund is $5,000, or $2,500 with regular monthly contributions. The management expense ratio (MER) is 0.98 per cent with no entry or exit fees, and funds can be accessed within 24 hours.
The product will be available on the Navigator platform.
Van Der Wielen said many Australians wanted to invest in the stock market but were discouraged by research and low investment balances.
“Many Australians with money to invest are time-poor and don’t have time to conduct research into what companies they should invest in,” he said.
“Also some may be tentative about approaching a broker or adviser because they feel their initial investment sum is either not large enough or will be eroded with high fees.”
Van Der Wielen accepted some clients will continue to want to deal with a broker or adviser and he saw the new fund as complementary to their roles.
“Advisers and brokers will always have a role because they offer advice to customers who are looking at more complex investments and give other value-add services,” he said.
“We have a network of advisers through BankWest and St Andrew’s, and Top 200 complements, rather than competes, with the financial planning part of the business.”
Recommended for you
As the industry navigates the fallout from recent product failures, two major AFSLs have detailed their APL selection process and relationship with research houses, warning a selection error could “destroy” a licensee.
The impending retirement of financial advisers in their 50s could see the profession face significant succession challenges over the coming decade and younger advisers may not be the answer.
With a third of AFSLs being solo advisers, how can they navigate key person risk and ensure they are still attractive propositions for buyers when it comes to their succession planning?
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
